According to Matthew David Parker, there are various forms of housing for example debt, mortgages, equity securities and direct property ownership. These are more physical real estate assets underlying each field. It means that for one to select a favorite type of real estate, it is important first to determine underlying characteristics of the property.
The performance of real estate impacts the choice of personal property.
When considering underlying characteristics of a real estate, one has to find the location of the property. It is also advisable to look whether the building is a shopping mall, warehouse, residential home, office towers or a combination of both. According to real estate Investigator, Every property has its performance influence drivers.
You cannot assume that any property is preferable just because previous types of the buildings were right.
Income-Generating and Non-Income-Generating Real Estate
There are five types of the preferable income-generating real estate. These are retail, industrial, offices, leased and residential properties. There are also others like seniors care housing, mini-storage, hotels and parking lots. A key factor to consider when choosing real estate is the ability to generate income.
Other non-income producing property includes vacant or vacation commercial properties buildings. To select the preferable real estate business, you have to choose which will give you rent and your investment returns through appreciation capital. When choosing the right property to invest into, you have to select debt secured generating real estate that will guarantee you sufficient personal income to cover the mortgage payments as is there is adjusted revenues generated from the tenants.
Office Real Estate
Offices are the preferable real estates. Offices are also the largest profile property types due to their typical suburban office park and downtown locations. The demand for office property is regarded based on office workers and their average space per each. As the white-collar jobs continue to increase, there is the high demand for real estate.
Returns from office properties vary with market and are very sensitive to the performance of the economy. As such office property presents high operating costs, such that in case a tenant vacates, there is a substantial effect on your property returns. But in the prosperity times, your office real estate will perform very well due to space demand as rental rates increase.
Retail Real Estate
There are various categories of retail buildings like enclosed shopping malls and single tenant buildings. Better local property revolves around enclosed mall spacious premises near roadways. Your retail buildings can have food stores that also act as grocery stores. Very often, preferably real estate can have smaller tenants with Commercial Retail Units, CRU.
Retail property has the tendency of performing exceptionally well during economic growths.Retail property has relatively stable returns as compared to Office real estate since retail leasing is longer and retail tenants are less likely to relocate.
Industrial Real Estate
Industrial property is of average preference. Land requires averagely small investments, have lower operating costs and also require less intensive management. There are various forms of the industrial real estate for example manufacturing, research, and development, distribution and warehousing.
Some good industrial real estate can also have full or partial build-out offices. Good industrial land considers functionality for example location proximity to major transport routes, the degree of loading and space specialization, as well as configuration of the building.
Multi-Family Residential Real Estate
Family residential properties deliver very stable returns since people will always look for places to live no matter the economic situation. As such, residential housing tends to be high, and the loss of only tenants does not affect the entire property.